Understanding Your Loan Choices

Here is a standardized comparison of the different types of educational loans that students can use at Columbia College while pursuing higher education goals.

  • Subsidized: Federal Stafford loan that requires a student meet certain need criteria. The federal government pays interest on this loan while a student attends school at least half time or during authorized deferment.
  • Unsubsidized: Federal Stafford loan for students that does not have income requirements for a student to qualify. The student is responsible for interest while in school. A student can also opt to have the interest added to your principal balance through a process called capitalization.
  • Graduate PLUS: Federal credit-based loan for graduate students. It is not need-based and has fixed interest rate.
  • Parent PLUS: Federal credit based loan for parents of dependent students. It is not a need-based loan.
  • Private, credit-based loans: Non-federal loans that are not restricted on financial need. Benefits, qualification, and rates vary by lender.

Subsidized Stafford Unsubsidized Stafford Graduate PLUS Parent PLUS Private Credit-
Based
Funding Federal Federal Federal Federal Private Lenders
Lender U.S. Dept. of Education U.S. Dept. of Education U.S. Dept. of Education U.S. Dept. of Education Varies
Interest Rate (by academic year) 2009/10 5.6%
2010/11 4.5%
2011/12 3.4% 		2009/10 6.8%
2010/11 6.8%
2011/12 6.8% 		2009/10 7.9%
2010/11 7.9%
2011/12 7.9% 		2009/10 7.9%
2010/11 7.9%
2011/12 7.9% 		Varies
Eligibility Based on financial need No income restrictions Credit check required Credit check required Credit check required
Annual Loan Limits Varies by year in school from $3500-$5500** Varies by year in school from $5500-$7500** Cost of Attendance minus any financial aid awarded Cost of Attendance minus any financial aid awarded Cost of Attendance minus any financial aid awarded
Lifetime Limits (or aggregate limits) Varies by grade level and undergraduate or graduate status. Varies by grade level and undergraduate or graduate status. None None Varies
FAFSA required? Yes Yes Yes Yes No
In-School Interest Paid by the Federal Government Borrower's Responsibility* Borrower's Responsibility* Borrower's Responsibility* Borrower's Responsibility*
Grace Period 6-month grace period interest paid by Federal Government during grace period 6-month grace period, during which interest will accrue No grace period- However graduate student may defer payments while enrolled No grace period- However parent may defer payments while student is enrolled Varies by lender
Credit Requirements Approval based on federal standards, not credit score Approval based on federal standards, not credit score Credit approval based on credit score and history Credit approval based on credit score and history Credit approval based on credit score and history
Enrollment Requirements Student must be enrolled at least half-time Student must be enrolled at least half-time Graduate students only: must be enrolled at least half-time Student must be enrolled at least half-time Varies by lender. Most require a student be enrolled at least half time.

*Borrowers have the option of making payments while in school or waiting until repayment begins. Interest that accrues during these periods will be capitalized if not paid by the borrower.

**Stafford annual loan limits vary based on grade level and dependency status. Additional information can be found at: http://www.ccis.edu/offices/financialaid/faq.asp#gradelevel.